The Tribune

By LEANDRA ROLLE

Tribune Chief Reporter

lrolle@tribunemedia.net

BAHAMIAN motorists are being urged to brace for higher prices at the pumps as rising oil costs linked to escalating tensions in the Middle East begin to impact the market, with one retailer warning “it's just a matter of time” before costs increase.

Vasco Bastian, vice president of the Bahamas Petroleum Retailers Association, could not give a timeline when prices coud increase.

However, he told The Tribune prices will likely increase when retailers’ current inventory runs out.

“I can tell you from where I sit as a retailer, there will be some minor adjustments in cost,” he said. “When exactly that cost would come into effect, I don't know until corporate speaks to us and let us know that ‘hey, we got a new shipment of fuel, it’s gonna go up by five cents or ten cents or 25 cents, or whatever.’

“Hopefully it don't go up that high, but you know consumers can really brace for higher prices.”

BPRA president Raymond Jones said it is unlikely wholesalers have enough fuel inventory to last several months, noting that new shipments are expected soon. He added that when the next fuel shipment arrives, it will likely come at a higher cost.

“This could be a matter of a week or two or three or four, depending on which companies are importing when,” he added.

Their comments came as oil prices spiked again on Monday as the US-Israeli war with Iran intensified.

Major oil producers in the region have reduced output due to export constraints while Iran, Israel and the US have all reportedly struck oil and gas facilities since the war started, raising concerns about further disruptions to global supply.

Despite the rising oil prices, local government officials have sought to reassure Bahamians, saying residents need not fear electricity bill increases in the short or medium term.

Prime Minister Philip Davis has said any spike in global oil prices directly affects The Bahamas, but noted that safeguards are in place to cushion consumers during periods of volatility.

Economic Affairs Minister Michael Halkitis added the government is taking a wait-and-see approach before considering any revisions to its fiscal plans.

Mr Jones, meanwhile, warned of the escalating war’s wider impact, saying it may not just affect fuel, but freight and insurance on cargos and airline tickets.

“Everything is driven by fuel to some degree,” he said, “so that could have a knock-on effect across the globe, which could have a negative effect because the price of it, depending on the impact on the fuel price, you'll see less travel.”

For his part, Mr Bastian urged drivers to continue their usual routines, assuring that there will be no gas shortages.

He said there will likely only be a minor price adjustment and encouraged Bahamians to carpool, service their vehicles and keep their tyres properly inflated as cost-saving measures.

As of yesterday, prices at the pumps stood at $5.34 at Shell, $5.30 at Esso and $5.31 at Rubis.